An at-fault accident raises your car insurance rate an average of 35 percent nationally. Here is exactly how much your rate will increase, which insurers are most forgiving, and how long you will pay the surcharge.
How Much Does an At-Fault Accident Raise Your Rate
An at-fault accident raises auto insurance premiums by an average of 35 percent nationally — approximately $701 per year in additional premium. However the increase varies significantly. A minor fender-bender may raise rates 20–25 percent while a serious accident with injuries can raise rates 40–60 percent. The surcharge typically lasts 3–5 years from the accident date with the full impact in years 1–2 and gradual reduction in years 3–5 as the accident ages off most insurers' lookback windows.
Most Forgiving Insurers After an Accident
State Farm applies the lowest accident surcharges of any major insurer — raising rates an average of 18 percent after a first at-fault accident versus the industry average of 35 percent. Geico and Nationwide are also relatively forgiving. Allstate and Liberty Mutual apply higher surcharges and are among the least forgiving major insurers. After an accident, shopping quotes from multiple insurers is critical since your current insurer may raise rates dramatically while a competitor is significantly cheaper.
Accident Forgiveness Programs Explained
Several major insurers offer accident forgiveness programs that prevent a first at-fault accident from raising your rates. Geico offers accident forgiveness to drivers who have been accident-free for 5 years. Allstate offers it through its Your Choice Auto program. Progressive and Liberty Mutual also offer accident forgiveness. These programs are typically earned through clean driving history or purchased as a small add-on premium. Accident forgiveness applies once — a second accident results in a surcharge regardless.
Should You File a Claim After a Minor Accident
After a minor accident consider whether filing a claim is financially worthwhile. If damage costs $1,800 and your deductible is $1,000, the net insurance payout is only $800. If filing causes your premium to increase by $600 per year for 3 years, you pay $1,800 more in extra premiums than you received from the claim. Paying $1,800 out of pocket avoids the surcharge entirely and preserves your claims-free discount. However, always file a claim if anyone was injured regardless of cost.
How Long Does an Accident Affect Your Insurance Rate
An at-fault accident typically affects your insurance rate for 3–5 years depending on state and insurer. Most insurers apply the full surcharge for years 1–3 and a reduced surcharge for years 4–5. After 5 years most accidents age off your record. Shopping quotes annually as the accident ages is essential — you may qualify for significantly lower rates from a new insurer even while your current insurer has not yet reduced your surcharge.